As mentioned previously, under EU consumer laws, such as the Digital Content Directive and the Unfair Contract Terms Directive, Nintendo can terminate service agreements for significant breaches, including piracy. This includes revoking access to future updates but not disabling already installed software. Thus, losing access to future updates is a fair outcome, not an unfair crippling of functionality, as it's tied to the actions breaching the terms. The claim that the ban unnecessarily cripples functionality may not hold if the feature remains usable after the ban.
To elaborate, I have two examples below.
Scenario 1: The user downloads an update, unlocking the MicroSD Express slot before the console is banned. Post-ban, they lose access to the slot despite it not requiring online services to operate.
This could be seen as an unfair violation of the DCD, as this slot does not require continued online access to be usable.
Scenario 2: The console is banned before the user can download the update, preventing them from unlocking the slot.
If the ban prevents downloading the update before it's installed, the user cannot unlock the MicroSD Express slot. However, this is a consequence of the ban, which is triggered by a significant breach, such as piracy. Under the DCD, Nintendo's obligation to provide updates terminates upon contract termination due to breach. The UCTD requires termination clauses to be fair, and the previously linked study on digital services indicates that termination for significant breaches, such as piracy, is generally permissible if it is transparent and justified. Given that the violation undermines service integrity, preventing access to future updates, including feature-unlocking ones, is likely viewed as a proportionate response and not unfair.
I am unsure which scenario you're suggesting Nintendo is doing, but this is my understanding of the legal implications. Keep me honest here; my understanding currently is that scenario 2 is the current situation and if they were banned after unlocking the slot, the slot wouldn't be locked?
Edit: Corrected mention to say DCD instead of UCTD in Scenario 1.